Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent Events

On March 25, 2019, the Company entered into a term loan agreement (the “2019 Loan”) with SVB and WestRiver Innovation Lending Fund VIII, L.P. (“WestRiver”), pursuant to which the Company may borrow up to $15.0 million, issuable in three separate tranches (“Advances”), of $7.5 million, or Tranche A, which was issued upon execution of the SVB and WestRiver Loan Agreement, $2.5 million available to be issued until May 31, 2019, (“Tranche B”), and $5.0 million (“Tranche C”), which the Company will draw upon the achievement of certain regulatory milestones (the “Tranche C milestones”).

The maturity date of the 2019 Loan is March 1, 2023. Under the terms of the 2019 Loan, the Company is to make interest-only payments through December 31, 2019 on Tranche A and Tranche B at a rate equal to the greater of the Prime Rate plus 1.00%, as defined in the 2019 Loan, or 6.5%, followed by an amortization period of 39 months of equal monthly payments of principal plus interest amounts until paid in full. The interest-only period will automatically be extended to June 30, 2020 if the Company achieves the Tranche C milestones, followed by an amortization period of 33 months of equal monthly payments of principal plus interest amounts until paid in full. In addition to and not in substitution for the Company’s regular monthly payments of principal plus accrued interest, the Company is required to make a final payment equal to 6% of the aggregate principal amount of the Advances on the maturity date.

The Company has agreed to issue to SVB and WestRiver warrants to purchase shares of common stock on when we draw on each of Tranche A (an aggregate of 12,131 shares of common stock) and Tranche B (an aggregate of 24,262 shares of common stock), with an exercise price of the lower of the average closing price of the Company’s common stock for the previous ten days of trading or the closing price on the day prior to funding. The warrants are immediately exercisable upon issuance and expire ten years from the date of issuance.

Upon execution of the 2019 Loan, the Company drew $7.5 million from Tranche A and repaid the outstanding principal balance and accrued portion of the final payment for the SVB Loan in full.  

The Company’s obligations under the 2019 Loan are secured by a first priority security interest in substantially all of the Company’s current and future assets, excluding intellectual property. The Company is also obligated to comply with various other customary covenants, including restrictions on the Company’s ability to encumber its intellectual property assets.